Most small business owners handle legal situations without professional help and many of them lose money when they do.
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New LegalShield data reveals that small business owners skipping professional legal help face staggering losses, with 25% losing up to $100,000. As roughly $10 trillion in boomer-owned assets prepares to change hands, 52% of owners still handle legal matters themselves, often with costly consequences.
Recent LegalShield data revealed that 52% of small business owners said they handled their most recent legal situation themselves. Of those, nearly three in four lost money. A quarter lost between $25,000 and $100,000. Nearly one in twelve lost more than $100,000.
The pattern is clear: 65% say cost is the biggest barrier to legal help. So they go without. And it costs them more. But the most consequential legal decision many of them will ever face, selling or transferring their business, is approaching fast.
The Transition Ahead
An estimated 2.3 million boomer-owned small businesses, employing 32 million Americans and representing roughly $10 trillion in assets, are expected to change hands this decade. The LegalShield data found 66% of owners are at or near retirement age and half expect a sale or transfer within five years.
According to LegalShield, preparation does not match the timeline:
- 28% have no written succession plan
- 29% of heirs or successors don’t fully know what the owner wants
- 3 in 10 lack or haven’t considered the legal guidance needed for a transition
- 44% say business sale or acquisition advising is the legal service they need most
On the acquisition side, confidence isn’t much stronger: nearly 1 in 6 prospective buyers say they are not confident in their ability to handle the legal aspects of a purchase.
Industry estimates suggest only 30 to 40% of these businesses will successfully sell. For owners who approach that process the way they’ve approached other legal situations, alone, the data suggests the financial consequences will be significant.
“Many of these owners have no successor in mind and no real idea of what their business is worth,” said Bill Thrush, a LegalShield provider attorney at Friedman, Framme & Thrush, P.A. “They’re working on a short timeline with no roadmap. And when a family is involved, that pressure doesn’t just threaten the finances. It fractures relationships.”
Despite these barriers, the demand for help is overwhelming: 76% say affordable, on-demand legal support would be extremely or very valuable. The gap is not awareness. It is access.
“By the time most owners reach out, they’re already managing a problem that could have been prevented,” said Mike Fiffik, a LegalShield provider attorney at Fiffik Law Group. “The cost of not having legal guidance almost always dwarfs the cost of getting it.”
This survey is the first in a series from LegalShield examining how Americans navigate legal decisions at critical life transitions, from business ownership to estate planning to elder care. Additional data will be released throughout 2026.
About LegalShield
For more than 50 years, LegalShield has provided everyday Americans with easy and affordable access to legal advice, counsel, protection, and representation. Serving millions, LegalShield is one of the world’s largest platforms for legal, identity, and reputation management services protecting individuals and businesses across North America. Founded in 1972, LegalShield and its privacy management product IDShield equip individuals, families, businesses, and employers with the tools they need to affordably live a just and secure life. Through technology and innovation, LegalShield is transforming how people access legal guidance, with hundreds of qualified attorneys and law firms across the country. To learn more, visit LegalShield.com and IDShield.com.
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